Nearly every day, there are a number of news headlines highlighting the astronomical costs of earning a college degree. Student loan debts are at an all time high, which greatly impacts social mobility and broadens the gap between the “haves” and the “have-not’s”.
Many people are beginning to wonder exactly why college costs and debts have become so oppressive and debilitating. Similar to medieval times, universities have seemingly become fiefdoms, even at the local community college level. Many believe that college tuition is greatly inflated in order to fund special projects or agendas.
Most recently the president of the College of Dupage, a community college located in northern Illinois, was accused of attempting to abuse state funding. According to reports, the college’s president Dr. Patrick Breuder, intended to use a political strategy in order to “shake loose” a $20 million construction grant. Following the accusations, Governor Pat Quinn suspended all future capital dollars going to the college.
Based on new data released by the U.S. Department of Education, less than half of borrowers with the most common type of federal student loans are replaying their debt on time. Nearly 51% of Americans owing Direct Loans, which are student loans made directly by the Department of Education, have fallen behind or are not able to make expected payments according to data on the $686 billion portfolio.Borrowers are not able to pay for a number of reasons, however, financial hardship remains the primary reason. Additionally, high paying jobs are a scarcity. Factor in credit card debt, which many borrowers accrue while in college, and borrowers soon find themselves falling deeper into debt.
Student loans are the highest source of debt and often hard to manage, however, debt management programs can help borrowers ease this financial burden. Debt management programs are for those who have a steady income and make payments on time, but still struggle to pay down debt due to high interest rates.
By enrolling in a debt management program, borrowers are able to work with experienced debt counselors in order to develop a solution that best suites their individual financial needs and long-term goals. Debt management programs have become a silver lining on the could that is the student loan crisis.